Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) trench, power and pump. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of nine geographic regions—Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Midwest, Northeast, Pacific West, South-Central, South, Southeast and Western Canada—and operates throughout the United States and Canada.

The trench, power and pump segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) pumps primarily used by municipalities, industrial plants, and mining, construction, and agribusiness customers. The trench, power and pump segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: (i) the Trench Safety region, (ii) the Power and HVAC region, and (iii) the Pump Solutions region. The trench, power and pump segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada.

These segments align our external segment reporting with how management evaluates and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The following tables set forth financial information by segment.

	General rentals		Trench, power and pump		Total
Three Months Ended March 31, 2017
Equipment rentals	$	977	$	189	$	1,166
Sales of rental equipment	96		10		106
Sales of new equipment	35		4		39
Contractor supplies sales	14		4		18
Service and other revenues	24		3		27
Total revenue	1,146		210		1,356
Depreciation and amortization expense	264		46		310
Equipment rentals gross profit	360		84		444
Capital expenditures	211		30		241
Three Months Ended March 31, 2016
Equipment rentals	$	955	$	162	$	1,117
Sales of rental equipment	106		9		115
Sales of new equipment	26		4		30
Contractor supplies sales	16		3		19
Service and other revenues	26		3		29
Total revenue	1,129		181		1,310
Depreciation and amortization expense	266		44		310
Equipment rentals gross profit	357		68		425
Capital expenditures	104		19		123

	March 31, 2017		December 31, 2016
Total reportable segment assets
General rentals	$	10,348	$	10,496
Trench, power and pump	1,474		1,492
Total assets	$	11,822	$	11,988

Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes:

	Three Months Ended
	March 31,
	2017			2016
Total equipment rentals gross profit	$	444		$	425
Gross profit from other lines of business	70			75
Selling, general and administrative expenses	(193		)	(177		)
Merger related costs	(2		)	—
Restructuring charge	—			(2		)
Non-rental depreciation and amortization	(62		)	(67		)
Interest expense, net	(94		)	(107		)
Other expense, net	(2		)	—
Income before provision for income taxes	$	161		$	147